Which of the following statements concerning major cycles is incorrect?
a. major cycles are characterized by wide fluctuations in business activity
b. the United States has experienced five major cycles since World War II
c. severe recessions in major cycles result in widespread unemployment
d. during major cycles, economic activity rises and falls relative to the long-term growth trend
b. the United States has experienced five major cycles since World War II
You might also like to view...
What are the two ways of looking at GDP?
A. Output approach and consumption approach B. Income approach and saving approach C. Expenditures approach and income approach D. Output approach and expenditures approach
A monopolistically competitive firm is producing an output level where marginal revenue is greater than marginal cost. What should this firm do to increase its profit or reduce its losses?
A) The firm should increase its implicit costs. B) The firm should lower its price. C) The firm should decrease its fixed costs. D) The firm should raise its price.
In which situation might a company NOT want to maximize profit?
A. A small business owner who sells a highly specialized product at a high price in order to compete with more established businesses in the area B. A family-owned company that has to decide between hiring a family member and hiring a highly-qualified external candidate C. A conglomerate with a highly streamlined supply chain who sells generic goods D. A corporation that has performed poorly in the last two quarters and is looking for new upper-management
When the economy is operating at a point where aggregate demand equals long-run aggregate supply, it must be true that:
A. the economy is in long-run equilibrium. B. aggregate demand also equals short-run aggregate supply. C. prices and expected prices are the same. D. All of these are true.